Hero MotoCorp has acquired an additional 3% stake in electric two-wheeler maker Ather Energy by purchasing 1.18 crore shares for ₹1,758 crore, according to a filing with the exchanges. This investment increases Hero MotoCorp's total stake in Ather to approximately 32.8%, up from 29.48% as of June 2026. The deal follows Hero's earlier announcement to invest an additional ₹1,000 crore in Ather.
The transaction comes after Ather Energy announced plans in June to raise up to ₹2,500 crore to fund expansion, research and development, new products, and manufacturing capacity. In July, Ather raised about ₹1,300 crore through a qualified institutional placement and approved a proposal to raise an additional ₹1,200 crore via a preferential issue. Hero MotoCorp's fresh investment is part of this broader capital raising effort amid intensifying competition in India's electric two-wheeler market.
Ather Energy has been experiencing strong growth in electric scooter volumes and increasing revenue contributions from high-margin non-vehicle streams such as software subscriptions, charging services, accessories, spare parts, and after-sales services. These developments have helped the company narrow its losses, positioning it to compete more effectively in the expanding EV sector. Hero MotoCorp's increased stake underscores its commitment to the electric mobility segment.
The ₹1,758 crore investment by Hero MotoCorp was completed recently, as disclosed in the company's filing with the exchanges. This transaction is part of Ather Energy's ongoing capital raising initiatives to support its growth and product development plans.